Indian authorities are exploring the option of allowing the movement of onion supplies already contracted by Bangladeshi importers after Dhaka formally complained about the impact of New Delhi’s ban on exports of the product.
Dozens of trucks carrying onions bound for Bangladesh were stopped at border crossings in West Bengal after the Directorate General for Foreign Trade banned all exports of the item on Monday following a shortage and a surge in prices on the domestic market .
As prices skyrocketed in Bangladesh after the ban, the Foreign Ministry in Dhaka formally complained to the Indian high commission on Tuesday via an unsigned note verb or diplomatic correspondence, people familiar with the events said. The matter was also raised by the Bangladesh mission in New Delhi, the people said on condition of anonymity.
Foreign Secretary Harsh Shringla, who made an unannounced visit to Bangladesh on August 18 to get bilateral relations back on track after they were hit by a series of irritants, has taken a personal interest in the issue and is involved in efforts to find a solution. people said. This had also been the first overseas visit amid the Covid-19 pandemic for Shringla, who was sent from India to Dhaka during 2016-19.
“One pending option is to allow the shipment of all onion supplies that were contracted by Bangladeshi importers before the ban came into effect. A solution is expected soon, ”said one of the people quoted above.
This is the second time in less than a year that an Indian ban on onion exports has had an impact in Bangladesh and prompted a formal reaction from Dhaka. Bangladeshi Prime Minister Shiekh Hasina formally raised the previous ban during a visit to New Delhi last October, jokingly saying at a public meeting that he had asked his cook to prepare his food without onions. He also said that the Indian side should give advance notice of such bans.
The note verbale from the Bangladesh Ministry of Foreign Affairs expressed “deep concern” over the Indian ban, as it “directly affects the supply of essential foods in the Bangladesh market.” He pointed out that at a meeting of the trade secretaries of the two parties on January 15-16, the Bangladeshi side requested the Indian side to consider not imposing restrictions on the export of essential food products required by Bangladesh, and in case of any event requiring a restriction, it was requested that the Bangladeshi side be informed in advance ”.
The latest ban, the note verbale read, “undermines the discussions that took place in 2019 and 2020 between the two friendly countries on the matter and shared understanding.” Bangladesh called on India to resume onion exports in view of the “excellent ties of friendship and understanding enjoyed by the two countries.”
The Bangladeshi side is concerned that the sudden ban sparked public buying panic and hoarding by unscrupulous traders, who bought available onion stocks and then artificially pushed prices up, the people said. They noted that the matter had caused embarrassment to the Sheikh Hasina government, and their opponents raised questions about the benefits derived from better ties with India.
Bangladesh is able to largely meet its annual need of around 2.5 million tonnes of onions from domestic production, but imports from India account for almost 90% of the deficit. As it did last year, Bangladesh can turn to Turkey and Egypt to make up the supply shortfall.
Foreign policy commentator Maya Mirchandani, who closely follows the neighborhood, said there could be internal compulsions, such as the scant ban on onion exports, but such moves need to be done in a more calibrated way.
“By restricting exports, we should at least meet existing export commitments and then deal with future exports with a needs-based approach. If we pride ourselves on a neighborhood first policy, we should make sure there are no problems with crucial neighbors like Bangladesh, ”he said.
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